Analysts: Gold's late-night violent pullback is due to investors taking profits

Spot gold hit an all-time high of $2,430 an ounce yesterday, but then pulled back all the way to around $2,344, down nearly $100 from its all-time high. Analysts said this was due to investors taking profits and exiting the market in what was seen as an excessive price rally. "The gold market has become quite disorganized at the moment with the influx of money," said Nicky Shiels, head of metals strategy at Financial Institution Group MKS PAMP SA. Philip Newman, managing director of consultancy Metals Focus, also said: "We do feel that the gold market is overextended at the moment, which will lead to position squaring, but any position squaring, any pullback will be short-lived and will present a very strong buying opportunity."